XYZ is the main contractor who had received Work Order from Surat Municipal Corporation for Construction of public roads. The work is divided in to two parts and the first part is completed by XYZ and the second part is done by PQR as per the instruction of XYZ. As per Sr. No.13 of Mega Exemption Notification, service tax is exempted for construction of roads used by general public. Is PQR eligible for this exemption since the department had issued SCN denying the exemption to PQR?
Kaustubh Karandikar Asked question October 9, 2020
Unless , exemption to sub-contractor has specfically been mentioned in exemption notification , the exemption will not be available.
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